There is ample opportunity in agriculture in Nigeria and the return on investment (ROI) in the sector is ‘almost unbelievable’.
This is according to investment banker turned entrepreneur, Bolaji Lawal, who is now the CEO of integrated agricultural company, Cassini Farms.
“If you look at the agri sector in Nigeria, the opportunities are limitless. That’s because agriculture in Nigeria is still basically practised at the subsistence level and in dire need of Nigerians that can build it into a 21st century business,” he told CNBC Africa.
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“As an investment banker, when I hear return on investment, I’m excited. The return on investment in agriculture is almost unbelievable.”
According to the company, it has a thirty hectare farm under cultivation in Port Harcourt which is dedicated to the production of fresh corn for sale.
“Last year, we did about a little over 30 million in terms of turnover,” Lawal said.
“This year, because we have added a new subsidiary – Cassini Viggies Limited – and of course we are expanding the corn business, we’re looking at a minimum turnover of 150 million. If our plans work out 100 per cent, maybe 300 million naira in terms of turnover.”
Lawal added that while there are challenges in the sector, such as getting land, Cassini has still been able to make progress.
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“For small to medium-scaled organisations like ours, it’s been difficult getting very large expanse of land but because we understand the terrain, we’ve been able to make progress in terms of getting land,” he said.
“Though very expensive at the moment – land is about 25 per cent of our cost of production, which is just too high [and] we’ve not gotten all the land that we want, that we need – we’ve been able to make a lot of progress.”